The SHA 2011 statistical manual improves upon the original by strengthening the classifications to support production of more detailed results and by introducing new classifications that expand the scope of the analysis and provide a more comprehensive look at health expenditure flows. The purpose of this brief is to present the main features of the SHA 2011 framework as well as discuss the process of its implementation and, ultimately, institutionalization within routine government operations.

1. System of Health Accounts 2011
What is SHA 2011 and
How Are SHA 2011 Data
Produced and Used?
Health resource tracking is the process of measuring health spending and the flow
of financial resources among health sector actors. Health resource tracking
is a vital component of health systems strengthening as it provides stakeholders
with information on the value of health care goods and services purchased and
patterns in the financing, provision, and consumption of health care resources.
The System of Health Accounts (SHA) is an internationally standardized
framework that systematically tracks the flow of expenditures in the health
system.The SHA is critical for improving governance and accountability at
the national and international levels of policy-making. First published in 2000
(OECD 2000), SHA was then adapted to the
developing-country context in a version of
the SHA called National Health Accounts
(NHA) (WHO et al 2003). Over 100
developing countries have completed NHA
estimations, many with support from USAID,
to inform health policy and measure health
system performance. Most recently, OECD,
EUROSTAT, andWHO produced an updated
version of the SHA (OECD et al. 2011).The
SHA 2011statistical manual improves upon
the original by strengthening the classifications
to support production of more detailed
results and by introducing new classifications
that expand the scope of the analysis and
provide a more comprehensive look at health
expenditure flows.The purpose of this brief is
to present the main features of the SHA 2011
framework as well as discuss the process of its implementation and, ultimately,
institutionalization within routine government operations.
Key Features and Components of
the SHA Framework
Completing Estimations with
SHA 2011
Institutionalizing SHA 2011
Key Differences between NHA
(based on SHA 2000) and
SHA 2011
Benefits of the Updated Framework
- SHA 2011
Inside

2. 2
Key Features and
Components of
the SHA Framework
International Standardization Allows for
Cross-Country Comparisons: The SHA
2011 is standardized for international application
through classifications that are comprehensive in
their inclusion of all entities, financing mechanisms,
providers, and types of health care goods and
services that occur globally.The SHA 2011 statistical
manual (OECD et al. 2011) provides detailed
discussion of these categories and classifications, as
well as the underlying concepts and principles that
define the framework.This manual ensures that
each country engaged in the estimation exercise
classifies country-specific flows in a uniform way and
produces comparable results.
ExpenditureTracking Provides an Accurate
Indicator of Consumption: The SHA 2011
framework uses expenditures to describe the
health system. Expenditures measure the value of
goods and services at the point of consumption in
monetary units. Compared with other monetary
units (e.g., commitments, disbursements, budgetary
projections, revenue), expenditures are preferred
for tracking past spending because they are closer
to the actual point of consumption and thus a more
accurate indicator of the value of that consumption.
For example, though a development partner might
commit to spending US$10 million to support a
country’s HIV program, a changing political landscape
in the partner country may cause the actual value
of funding disbursed to be less than originally
stated; or limitations in absorptive capacity in the
recipient country may cause the actual value of
funding allocated to various programs to be less
than budgeted. Focusing on expenditure allows for
another important policy application: the comparison
of actual to planned spending to increase
accountability and strengthen budgeting processes.
Functional,Time, and Space Boundaries
Contribute to Standardization: A central
concept to the SHA 2011 is that a specific
expenditure is classified based on the goods and
services consumed with it. Health expenditures
are defined as money spent with the purpose
of improving, maintaining, or preventing the
deterioration of individual or population health
status and to mitigate the consequences of ill health.
This “functional definition” of health care means
that the categories listing types of health care are
organized in terms of the type of care received (e.g.,
curative, rehabilitative, and preventive).The spending
captured in these categories covers all costs
incurred in the final consumption of the good or
service, including operational and on-the-job training
costs.This approach to health accounting is inclusive
of health spending from all sectors (public, private,
external) within the health system. By including all
sectors, the SHA 2011 allows countries to consider
the level of interaction and comparative importance
of the sectors at different stages of the resource
flows. Including all sectors also allows SHA 2011
results to answer critical questions about the burden
on, and behavior of, households in the health system.
In addition to defining health expenditures, the SHA
2011 also defines time and space boundaries, which
is essential to making the approach internationally
standardized.The SHA 2011 time boundary specifies
that each analysis covers a one-year period and
includes the value of the goods and services that
were consumed during that period.The time
boundary is necessary in making the distinction
between current and capital spending: SHA 2011
restricts core spending to only spending on health
care goods and services entirely consumed during
the one-year accounting period (“current” health
spending); investment in goods and services
whose value lasts beyond the accounting period
is considered “capital” spending and is tracked
separately.The SHA 2011 space boundary specifies
that each analysis covers one country and restricts
health care goods and services to those consumed

3. System of Health Accounts 2011 - What is SHA 2011 and How Are SHA 2011 Data Produced and Used? 3
by residents of the country, that is, citizens and
established foreign nationals.
Core and Extended Accounting Framework:
As Figure 1 shows, SHA 2011 tracks health
resources in magnitude and along their pathway
from origin to end use. SHA has at the core of its
framework three classifications: health care functions,
which show the types of health care consumed;
providers, which show who delivers health care
services; and financing schemes, which show how
goods and services consumed and provided are
financed. SeeTable 1 for more detail on these core
classifications.
In addition to these core classifications, the SHA
2011 framework proposes additional classifications
that are linked to the core classifications.These
additional classifications are beneficiaries, which
show health care consumption by population groups
(divided by age, disease burden, income quintile,
etc.); factors of provision, which show the inputs
used by providers to deliver health care services;
and revenues of financing schemes, which show the
sources of funding for each financing scheme.The
SHA statistical manual includes these classifications
as part of the “extended accounting framework,”
The manual also includes the capital formation
classification, which compiles investments by health
care providers, as part of the extended framework.
Table 2 provides more detail on the additional
classifications.
Organizing complex spending information into these
classifications allows the SHA 2011 to characterize
the financing and purchasing mechanisms associated
with health resource flows in the country while also
providing a snapshot view of the health resources at
Figure 1. SHA Tri-Axial Framework
OECD et al., 2011

4. 4
Financing
schemes
zz Definition: main types of financing arrangements through which people receive health care
zz Questions answered: “How are health resources managed and organized?” “To what extent are resources pooled”
zz Examples: Government programs run by the Ministry of Health, National AIDS Commission; voluntary
insurance
Health care
providers
zz Definition: organizations and actors that, either primarily or as part of the multiple activities in which they are
engaged, deliver health care
zz Questions answered: “What is the organizational structure that is characteristic of the provision of health care
within a country?” “Who provided the goods and services to consumers?”
zz Examples: Hospitals, clinics, health centers, pharmacies
Health care
functions
zz Definition: Types of health goods and services consumed and activities performed
zz Questions answered: “What types of health care goods and services were consumed?”
zz Examples: Curative care, information, education, and counseling programs, medical goods such as supplies and
pharmaceuticals, governance and health system administration (includes national-level surveys)
Table 1. Classifications under the Core Framework
Table 2. Classifications under the Extended Framework
Revenues
of financing
schemes
zz Definition: Types of revenue received or collected by financing schemes
zz Questions answered: “How much revenue is collected?” “In what ways was it collected?”
“From which institutional units are revenues raised for each financing scheme?”
zz Examples: Direct foreign financial transfers; voluntary prepayment from employers; transfers from the ministry of
finance to other governmental agencies
Financing agents zz Definition: Institutional units that manage health financing schemes
zz Questions answered: “Who manages the financing arrangements for raising revenue, pooling/managing resources,
and purchasing services?”
zz Examples: Ministry of Health, commercial insurance companies, international organizations
Factors of
provision
zz Definition: Types of inputs used in producing the goods and services or activities conducted inside the SHA 2011
“health” boundary
zz Questions answered: “What mix of production inputs do providers of health care goods and
services use?”
zz Examples: Wages, utilities, rent, materials, and services used
Beneficiary
characteristics
(age, gender,
socio-economic
group)
zz Definition: Characteristics of those who receive the health care goods and services or benefit from those activities
zz Questions answered: “What is the value of health care goods and services consumed by various population groups?”
zz Examples: Age, gender, socio-economic group
Beneficiary
characteristics:
(disease)
zz Definition: Characteristics of those who receive the health care goods and services or benefit from those activities
zz Questions answered: “What percent of total health resources went to Reproductive Health?” “What were the main
sources of funding for HIV?” “Who provided Malaria prevention services?”
zz Examples: Disease by ICD-10 classifications
Capital
formation and
related
zz Definition: Types of investments that health providers have made during the accounting period that are used for
more than one year in the production of health services
zz Questions answered: “What types of assets have providers acquired?”
zz Examples: Infrastructure, machinery, and equipment (capital formation); formal training, Research and
Development (related items)

5. System of Health Accounts 2011 - What is SHA 2011 and How Are SHA 2011 Data Produced and Used? 5
each stage of their journey. SHA 2011 results can
show how revenues are raised, how health funds are
managed or pooled, and how goods and services
are purchased, highlighting the movement of funding
from one stage (e.g., revenue raising) to the next
(e.g., managing and pooling). Stakeholders can then
focus on one dimension – for example, the sources
of health resources or the Revenues of Financing
Schemes dimension – to determine how dependent
a country’s health system is on external institutions.
Tri-axial accounting of health expenditures:
The SHA 2011 uses a tri-axial recording of
each transaction to enable understanding of
resource flows between financing, provision, and
consumption.This approach ensures that the value
of all health care goods and services consumed
equals the value of health care goods and services
provided and financed.
Tables 1 and 2 provide definitions, questions
answered, and examples for the dimensions, both
core and extended, that make up the SHA 2011
framework.
Completing Estimations with
SHA 2011
Completing resource tracking exercises in-country
according to the SHA 2011 framework typically has
four stages.The process is country-driven, though it
sometimes requires external assistance.The stages
are summarized in Figure 2 below.
Figure 2. Process for Completing SHA 2011 Estimations
Planning, Scoping, and Launch
A unit within the government (typically the Ministry of Health) identifies technical staff responsible for completing the exercise, and a steering committee
to manage the process and provide high-level input on the policy questions to be addressed. The technical staff and steering committee consult health
stakeholders from all sectors on the key questions that resource tracking can answer. With steering committee and stakeholder guidance, the technical team
can customize the SHA 2011 codes and define the parameters of the exercise (i.e., which extension dimensions to include).
Engage stakeholders
Establish technical team and
steering committee
Define parameters and questions;
create work plan
Data Collection
Countries can draw upon secondary data from the health information system and other sources if they are available. If not, countries can conduct primary data
collection for institutions (donors, NGOs, insurance companies, and employers). Even with primary data collection, technical teams may realize that surveyed
institutions do not have the quality of data or level of detail needed. Data gaps identified will need to be addressed in a standardized way. A major task is
collecting household data, ideally done through a national survey. Household data are typically collected every five years.
Gather secondary data Collect primary data
Data Analysis and Validation
Once data are collected, the technical team turns to data analysis, a process that involves mapping all health expenditures to their corresponding SHA codes
for each of the dimensions included in the exercise. This stage is often done as a workshop. The team will need to use other secondary data to define allocation
ratios for splitting some expenditures into units that match the SHA framework. The technical team should meet with the steering committee and stakeholders
to validate results and to identify and resolve any data gaps and conflicts. The technical team should produce final tables summarizing the results of the analysis
Review data and apply weights Map health expenditures to SHA codes at all dimensions
Report-Writing and Dissemination
Finally, the team disseminates “briefs” that summarize the main findings and policy implications. The team can also produce tailored dissemination products,
including PowerPoints, brochures, and additional policy briefs, for targeted audiences.
Present results of report to technical team Generate information products for wider consumption

6. 6
Institutionalizing SHA 2011
Though many lower- and middle-income countries
have conducted a single SHA or NHA estimation
to analyze their health expenditures, relatively few
countries produce them regularly. Producing SHA
on a routine basis is important to ensure that the
health expenditure information remains up-to-date
and relevant to policy discussions. It allows for more
powerful analyses, as data over time will illuminate
trends in health spending, and for more meaningful
application of results, as more stakeholders will be
aware of the results and how to use them effectively.
Producing SHA on a routine basis can also result
in higher quality data, as the systems for gathering
needed inputs and the technical capacity of the SHA
team will improve with each round of estimations.
The process of establishing SHA as an integral and
sustained part of government operations is called
“SHA Institutionalization.”
While desirable, institutionalizing SHA can be
technically and politically complex and can take
many years before the proper technical and
governance systems are in place. In response
to these challenges, international development
partners have developed strategies and tools to
facilitate the process. Examples include the Health
Accounts ProductionTool, which streamlines the
production process, and the AnalysisTool, which
automates basic analysis of results. International
development partners have also identified key
characteristics of institutionalized resource tracking
systems (presented inTable 3).Though the process
for institutionalizing SHA will also vary country
by country, countries can still reference these key
characteristics in order to strategize actionable
plans for moving forward.
Officially mandated The government recognizes the value of SHA estimations and provides an official mandate to
conduct SHA estimations on a regular basis.
Incorporated in
budgets
SHA is incorporated as an item in the government’s annual budget.
Housed in-country SHA is housed in a stable institution that will promote application of the results to policy.
Traditional locations include: the Ministry of Health, the Ministry of Finance, a central
statistical bureau, or a local university.
Proper team
capacity
The country SHA team has the capacity to plan, manage, and monitor the SHA estimation
process.
Stakeholders
engaged
A wide group of stakeholders and steering committee members are actively engaged in the
production, dissemination, and institutionalization processes relating to SHA.
Systematic data
collection
A systematic process for collecting necessary health expenditure data exists including, if possible,
incorporating SHA household survey questions into existing national surveys.
Coordination Mechanisms are in place to coordinate SHA estimations with other stakeholders and resource
tracking activities.
Reporting of results Results are analyzed, disseminated, and used by a wide range of stakeholders to inform relevant
policy discussions and increase system transparency.
Table 3. Key Characteristics of Institutionalized Resource Tracking Systems

7. System of Health Accounts 2011 - What is SHA 2011 and How Are SHA 2011 Data Produced and Used? 7
Key Differences between
NHA (based on SHA 2000)
and SHA 2011
Disease-specific SpendingTrackedThrough
“Global Burden of Disease” Classification:
Prior to 2011, countries used the “subaccount”
methodology to track spending in priority diseases
(e.g., HIV/AIDS) or health areas (e.g., Family
Planning). Subaccounts gathered more detailed
information on these subsectors and measured them
as a percentage of total spending on health in the
country. SHA 2011 has replaced subaccounts with
a comprehensive classification, Global Burden of
Disease (GBD), that is based on the International
Classification of Disease (ICD-10). Using GBD to
classify expenditures in the Beneficiary Dimension
with other characteristics (e.g., age, gender, and
socioeconomic status) will ultimately allow for more
policy application of interest to a wider group of
stakeholders.
“Health Financing Scheme” Dimension
Identifies How Funds are Managed: In the
NHA , the financing agent dimension answered
questions about who managed health resources as
they flowed from their origins to end use (providers
and functions). In SHA 2011, financing agents are
complemented with Health Financing Schemes (HF),
which answers how funds are managed. Health
Financing can also be defined as rules for satisfying
the three financing functions: raising revenue, pooling
and managing resources, and purchasing services.
“Current Health Spending” Represents
Spending on Final Consumption: NHA
produced the aggregateTotal Health Expenditure
(THE), which covered all health spending in a
country’s health system during the accounting period.
THE included spending on health care goods and
services entirely consumed during the accounting
period, as well as health system investments whose
value lasted beyond the accounting period.The
SHA 2011 separates these two types of spending,
using Current Health Expenditure (CHE) as a
new indicator. CHE represents only spending on
final consumption; capital spending is tracked and
aggregated separately.

8. DISCLAIMER
The author’s views expressed here
do not necessarily reflect the views
of the U.S.Agency for International
Development or the U.S. Government.
Abt Associates Inc.
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About HFG
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September 2013
References
OECD. 2000. A System of Health Accounts.
OECD, Eurostat, and WHO. 2011. A System of Health Accounts 2011.
http://www.who.int/nha/sha_revision/sha_2011_final1.pdf
World Bank,WHO, USAID. 2003. Guide to producing national health accounts with special applications for
low-income and middle-income countries. http://www.who.int/nha/docs/English_PG.pdf
Recommended Citation: Cogswell, Heather, Catherine Connor,Tesfaye Dereje,Avril Kaplan, and
Sharon Nakhimovsky. September 2013. System of Health Accounts 2011What is SHA 2011 and How Are
SHA 2011 Data Produced and Used?. Bethesda, MD: Health Finance & Governance project,
Abt Associates Inc.
Benefits of the Updated Framework - SHA 2011
Updating the SHA has benefited the health resource tracking community in many
important ways:
Improvements in Data Quality: Clarifying boundaries that NHA practitioners
identified as confusing allows for greater accuracy in the tracking of expenditures. For
example, Family Planning had an unclear boundary between prevention and curative
care, which often resulted in pre- and postnatal care being considered as curative
outpatient by some and as prevention for Maternal and Child Health by others. SHA
2011 clarified the boundary by creating a new prevention category, Healthy Condition
Monitoring Programs (HC.6.4) and clearly identified pre- and postnatal care as part of
this category.
Ability to Reflect Financing Mechanisms: the addition of the Health Financing
Schemes dimension has made SHA 2011 better able to reflect growing interest in and
complexity of financing mechanisms that characterize countries’ health systems.
Linked to Other International Classifications: SHA 2011 also ensures that the
SHA is consistent with other international classifications such as ICD-10 classifications
and the International Standard Industry Classification.
More Comprehensive: SHA 2011 has given countries a larger toolbox to use when
conducting estimations. For example, the extension dimensions were added (see
Table 2) as well as instructions for tracking imports and exports and adjusting data for
inflation in trend analysis.
Acknowledgements
The authors would like to acknowledge and thank the Health Accounts team atWHO for providing
their careful review and feedback to this brief.